The file format itself is not illegal. Creating MP3s of music you own in a physical form, such as CD, cassette, or (god forbid) 8-Track is not illegal. Beyond this is where things get a little complicated. It depends on several factors. The first, and most important factor is whether the artist has agreed to spread his/her/their music for free in mp3 form. A variety of primarily independent and underground artists share their music on their official websites, or through websites dedicated to sharing music online, such as http://www.mp3.com. These artists share their music for free in the hopes that you'll like what you hear, and purchase their album. These MP3s are legal, assuming you don't use them for profit somehow. Sharing MP3s of copyrighted music that has not been approved for distribution in MP3 form is technically illegal. It's illegal to distribute it to anyone who doesn't own a physical copy of it, regardless of whether you leave it on a server with restricted access, or mail someone a CD-R full of MP3 files. Downloading music that has not been approved for distribution through peer to peer (P2P) file-sharing programs, such as Kazaa and Bear Share is also illegal. Using file-sharing programs to download MP3s has become so prevalent, that the RIAA (Recording Industry Association of America) have begun tracking down users on the Kazaa network, and filing lawsuits against them. How? Their combination of ip address and email address. Apparently they've been sending subpoenas to their ISPs, demanding their personal information. Sure, all of this sounds scary, but ripping your own CDs is kosher, and there's nothing more convenient than having a hard drive full of your favorite music, queued up and ready to play.

The other poster has stated things very well, but it is important to note that the answer is specific to the US. In Canada, where I live, copyright law is different. However, the CRIA (Canadian Recording Industry Association) does pursue prosecutions and lobbies the government to change our laws to make them more like the US. They have gone to court to try and force internet service providers (ISP) to give them the names of people they want to sue for illegal music sharing. If a person purchases a recording in Canada, that person has the legal right to make as many copies of the recording as they want, provided they are only for their personal use. You cannot provide a copy to another person, which is where the legality of sharing copied music comes into play. You are also permitted to borrow a recording and make a copy of it for yourself. Again, you cannot provide a copy to anyone else. I think that this approach has a reasonable balance. This same right has been confirmed by a European court, so it is not unique to Canada. It may not be easy to change Canadian law to follow the US for one important reason: Canadians pay a levy of C$0.21 on every blank CD purchased (other media, such as audio tape, also have levies). This is intended to provide payments in lieu of royalties to music creators. The levy is paid whether or not the CD is used to store music - some arre used for data, some for original works that are not subject to royalty payments, and some as coasters. A legal argument exists that royalty payments have already been made to the music creators through the levy. The CRIA is intensely interested in changing the current laws.

USA only. MP3 Legal information - MP3's can be legally owned providing the following, you encode songs off of your own CD's and keep them for yourself, obtain written permission from the copyright holder of the music, or the music is available with the copyright owners consent. It is Illegal to encode MP3 files and share them with any other entity unless you have written permission of the copyright holder of the music. It is also illegal to download any songs or music off of the Internet for CD's you do not have in your own possession and rightfully own or have no copyright holders consent. http://www.computerhope.com/mp3.htm Trading, selling and distribution is a violation of the law unless you have permission to do so. The RIAA is powerful and they are in a panic now though industry figures show that CD sales have skyrocketed because the number of new artists being found through MP3 file sharing. --------------------------------------------------- MP3 as a file format, is perfectly legal and it's legal to create MP3 files off of your music CD's for personal use. Also, recorded works to which you personally own the copyrights are legal. In Canada and UK (see comments for previous answer) and in many other parts of the world, trading MP3 files is legal. The RIAA is not recognised outside of USA.

Usually not. The only exceptions are if you're working with music you haven't payed for, other than that, you can put it in any format you want in whatever location you want, just don't let other people copy or listen to your music, cause they didn't pay for it with the $$$$.